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in this video I want to cover three stocks that out consider premium stocks that Warren Buffett and Berkshire Hathaway owned as well if you're an investor looking for some ideas and some top quality businesses then this video is definitely for you when you want to watch this all the way through and of course as a thank you if you stick around to the end of this video I'll be sharing with you guys which of these three stocks I would personally pick if I had to so keep in mind that all through these companies are publicly traded companies you can buy them in the stock market here today and I believe at their valuations today they're creating a pretty attractive prices my guys of course if you enjoyed this content you want me to make more content like this all I ask is you hit that like button and subscribe if you're brand new to the channel but either way to remember for this video Buffett's portfolio is absolutely massive the man runs a company that has hundreds of billions of dollars so when you see some of these portfolio sizes they may seem small on a percentage basis but trust me the dollar amount behind them is huge so let's start off strong here with the best bank probably in the world JP Morgan Chase which accounts for 3.4 3% of Buffett's portfolio JP Morgan stock is currently down 34% from its highs however there's still good reason to own this bank in good times the bank is an absolute beast growing revenue and profits consistently year-over-year and even in low interest rate environments like in 2010 to 2015 after the last recession that we went through the company still pulled in over a hundred billion dollars in revenue annually and around 20 billion dollars in profits annually and they do this pretty consistently now fast forward 2020 or pretty much in this kind of environment once again and JP Morgan Chase will most likely see these profits decline from 2019 but similar 2010 to 2015 it should still maintain very profitable many people owned banks for their dividends and JP Morgan Chase yields nearly a four percent dividend here today with a good history of nine years of growth while drawing the dividend by 16 percent year-over-year now the payout ratio a bit high and as I stated earlier income will most likely be lower here in 2020 than in the past so I would expect JPMorgan Chase to slow down these dividend hikes moving forward I don't think the dividend is at risk of getting cut at this time and I personally believe that most of the banks will be able to sustain their dividend going forward here with GP Morgan Chase you can arguably own the best Bank in the world at a market cap under three hundred billion dollars and a p/e of eight and enjoyed an yield of four percent and although the p/e for this Bank and pretty much every other Bank will be significantly higher in 2020 and 2021 I still believe that JPMorgan Chase provides some excellent value here if you have a longer term horizon and you want to own quality companies in your portfolio I can pretty much safely say that this company is a steep Haven if you will destroy your cash in earn some dividends and most likely come up on top maybe not with massive gains but with some gains over the next few years the second stock here is American Express which is a giant in the payment space and this company makes up seven point eight percent of Buffett's portfolio American Express stock is currently down thirty five point five percent from its highs and it's business will take a hit in the short term due to lower global travel American Express makes most of their money from loans or from their credit card division and these credit cards are typically geared with travellers and as we know right now that's not really happening too much in the world both the loans division and the credit card division of American Express have been impacted directly by the global issue that being said the company has been growing nicely in recent years pulling in nearly 50 billion dollars in revenue and 6.6 billion dollars in profits in 2019 my rough guess is that they will most likely see a hit of 20% or so to their business in 2020 which will result in lower profits and revenue for the foreseeable future however I don't think it's unrealistic to see American Express recover quicker than other traditional banks like JPMorgan Chase and get back to pulling in a 50 billion dollars in revenue within the next three to five years or so regardless of low interest rates or not now like JPMorgan Chase American Express has a dividend yield and only 2% with a healthy growth rate of 10% year over year and eight years of consecutive growth however their payout ratio is much healthier here compared to JP Morgan sitting under 50% and even if they take a 20% haircut here in 2020 this should still be fairly sustainable the company has a market cap currently of 71 billion dollars and a p/e of around 13 which is lower than the broader market but because it has a loan division which carries higher risk the company does trade at a much lower p/e as a result and its peers Visa and MasterCard which are much less riskier companies in a similar space here as American Express trade at a much higher premium now Buffett also owns Visa and MasterCard so not like he believes American Express is the best out of the three however looking at the value today it's hard to really say that either if the other two companies are providing us a good value but with the American Express because of that added risk you are seeing some pretty good value in my opinion today on this stock the third pick we have here is good old coca-cola which is of course the largest pure-play beverage maker in the world this company makes up a nine point one five percent of Buffett's portfolio so you know he still loves this brand coca-cola stock is down close to 25% off its highs and honestly guys you don't see this too often with a blue-chip giant like this company revenues were on a decline but recently they have started increasing again but you don't own Co hoola for the growth here so just remember that most investors always company for stability and dividends and here you can see in 2019 revenues were 39 billion dollars and profits were around 9 billion dollars or so so slowly strong stable blue-chip giant despite a recent declines in revenue and profits now like I said one of the biggest reason you'd own this company is for dividends and this company is a dividend King with 57 years of consecutive growth they also have an impressive 3.6 percent starting yield and a respectable 5.5 7 percent compound annual growth rate for the dividend their payout ratio is a bit my opinion and could be concerning in the short term but the company has gone through worse and come out much stronger before I have no reason to believe that this time will be any different and I do believe the Kohala will be around for the long haul as I mentioned this company is a giant at nearly two hundred billion dollar market cap and you will think a slow growth company like this would have a p/e that's low but nope when you look at coca-cola here their p/e is 20 and in my opinion this is a premium stock so it commands a premium valuation and as a result a lot more investors really flock into the stock especially during times of uncertainty and that's why it creates at a higher p/e than say a lower quality company coca-cola is one of the most stable companies you can probably own your portfolio if you are looking save 10 20 years out you just want a consistent stream of dividend income almost every dividend growth investor has some exposure to the space with either coca-cola or with Pepsi and in my opinion I think Pepsi is the better play here but at current prices guys would it be 25% off it's high as it's hard to really argue that coca-cola is not showing us some sort of value here today now if you want a more in-depth video on American Express for example I did cover that in my me stocks 2020 video so check that out after this video and I also cover JPMorgan Chase recently I believe in the April 20 20 video so check that out as well but I haven't spent the time on the channel to really go in depth with coca-cola and a current prices it may actually be worth doing that if you guys want to see that let me know in the comment section down below now guys I promised you that I'll let you know out of these three stocks which one I would personally be buying at least current prices and if I really had to pick between JP Morgan Chase American Express and coca-cola at today's prices and today's valuations I would go with JP Morgan Chase now all three of these companies are attractive to me they all have some pretty good reasons as to why you may want to own them but I think for me JP Morgan Chase at these prices is something you don't see very often and I do believe that interest rates yes may be low for the foreseeable future but eventually we'll start picking up once again and at that point the profits will just start rolling in for this openiy now in the meantime until that happens I still think they're gonna continue growing I still think they're gonna continue bringing in profits and cash every quarter so it's not really too much of a concern here for me and I don't really believe this company is gonna go bankrupt or anything crazy like that I don't think any of these three will but if I had to pick one of the three it would be JPMorgan Chase another big reason really would be when I look at the banking sector I think this is the best company in that space but when I look at the credit card sector I can't say that American Express is the best I would say visa would be the best in there and if I look at the beverage sector like I told you guys Pepsi would be my pick in there because I believe it's a better run company and more diversified company compared to coca-cola so I mean I like to focus on Best of Breed best in their industry and Aoife Morgan Chase is the only one out of the three that really gives me that opportunity here so there you have it those other stocks that I believe out of Warren Buffett's whole portfolio are currently on sale which I would still consider premium companies guys let me know if you agree or disagree with me in the comment section down below don't forget to drop a like as well and if you're brand new here hit that subscribe button so you don't miss any more content just like this thank you so much for watching guys don't forget to rest positively I'll see you in the next one
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